New data highlights the ongoing financial struggles faced by many Kiwis amid a challenging economic climate. The latest Centrix Credit Indicator report for March 2025 reveals that cases of financial hardship and credit defaults remain high.
According to Centrix, financial hardship cases in New Zealand have increased by 16% year-on-year, reflecting the ongoing financial pressures many households face. Nearly 46% of these hardships stem from difficulties making mortgage payments, while 30% relate to credit card debt, and 16% to personal loans.
Those aged between 35 and 49 are the most affected, a prime working and family-raising age that can make these financial challenges particularly distressing.
Accompanying this is a staggering 40% rise in consumer credit defaults over the last year, highlighting how many people are falling behind on repayments.
These figures underscore the reality that financial relief is still desperately needed across many Kiwi households.
Loansmart Managing Director Murray Greig has observed these trends firsthand.
He says, “It’s tough out there for many New Zealanders. The rising cost of living and economic uncertainty mean that more people are struggling to keep up with credit repayments.”
The Bigger Picture
While there are hints of early recovery in some sectors, such as slightly improved mortgage arrears and stabilised early arrears rates, the overall picture remains challenging for individuals and households.
About 480,000 consumers, or 12.39% of the credit-active population, are behind on payments.
Though this represents a slight improvement month-on-month, it’s evident that many Kiwis are navigating financial stress.
The rise of consumer defaults creates an additional challenge, as overdue payments and high-interest debts continue to burden a large segment of the population.
How Debt Consolidation Can Help
For people struggling with mounting debt, debt consolidation loans offer a solution.
A debt consolidation loan combines multiple debts, such as credit cards, personal loans, and other forms of borrowing, into one manageable loan with a single repayment plan.
This often comes with lower interest rates over flexible terms, reducing total repayment costs and easing financial burden.
At Loansmart, we specialise in creating tailored solutions for Kiwis facing financial strain. A debt consolidation loan not only simplifies debt management but can also reduce financial stress by aligning repayments with your payday.
Key Benefits of Debt Consolidation Loans:
- Lower Monthly Payments: Combining debts into one affordable payment helps reduce outgoing costs.
- Save on Interest and Fees: Many smaller debts come with high interest rates and service fees. Consolidating them can eliminate this extra cost.
- Improved Credit Score: By paying off existing debts on time, you may improve your credit rating over time.
Murray Greig says these loans are one of the most effective ways to help people gain control of their financial situation.
Loansmart’s Commitment to Supporting Kiwis
Since 2008, Loansmart has been working alongside Kiwis to create smarter, faster, and more affordable financial solutions. We understand the challenges of managing multiple debts and provide easy, online services to help you move toward financial freedom
With interest rates starting from 9.95% and repayment terms tailored to suit your needs, a Loansmart debt consolidation loan is a reliable option to regain control of your finances.
Want to see how debt consolidation could benefit you? Try our loan calculator to get an estimate of how much you could save, or contact us directly for a free loan assessment.
